How does lawsuit funding work?

Lawsuit funding offers financial help to plaintiffs in the throes of a legal matter. The wait for a settlement or jury verdict can take months, or even years, which can leave injured plaintiffs struggling to make ends meet. Approved plaintiffs get the financial relief to which they are entitled before the case is formally resolved.  The arrangement allows plaintiffs who might be otherwise pressured to settle for too little, too soon continue negotiating or proceed  to trial.

The basics of lawsuit funding

Litigation funding is similar to a cash advance provided to plaintiffs who have not yet received a settlement for their case. Legal funding companies work directly with attorneys to ensure plaintiffs get the financing necessary to wait out a lawsuit until a fair settlement is determined. Money is paid back after settlement – if a plaintiff does not win his case, no money is owed.

When considering whether to apply for funding, it is important to keep the following in mind:

  • Plaintiffs cannot qualify for pre settlement lawsuit funding until they have hired an attorney on a contingency-fee basis.
  • LawStreet Capital will assess your case based on whether the defendant named in the complaint is able to pay the settlement amount. This usually involves businesses or insurance companies that have the capital to cover a settlement.
  • Funding is only available for complaints involving personal injury – lawsuits filed for property damage alone are not eligible. Personal injury cases covered by funding are diverse and include slip and fall, vehicle accidents, medical malpractice and construction accidents, among others.
  • Legal funding companies work directly through the attorney for the plaintiff to determine eligibility. The attorney in question must agree to pay the funding company directly once a settlement is awarded. Funding agreements are signed by the attorney, providing plaintiffs with additional peace of mind that the funding contract is appropriate.

Advantages of funding with LawStreet Capital

Pre settlement funding offers more than financial help – it provides the edge some plaintiffs need to get the settlement they deserve. Some defendants are able to string out the legal process over a long period of time, financially strapping plaintiffs struggling to keep up with high medical bills and living expenses. In many cases, these plaintiffs end up settling their cases early – often for a much lower amount – simply to get a settlement to pay the bills. With additional time to wait, attorneys are often able to negotiate a higher settlement amount for their clients.

Legal funding benefits plaintiffs who are struggling to make ends meet while waiting for a settlement to be awarded. If you are in need of  legal  funding, contact LawStreet Capital today. Our terms and rates are some of the best in the industry and we can provide approval within 24 hours. Don’t try to wait out a settlement alone. With LawStreet Capital, you can rest assured your bills will get paid until your case is settled.